Creativityin Innovation
Creativityin Innovation
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Creativity can be seen in the context of the nature debate as either something that is learnt
or inherited. It is on important part of the intervention and innovation processes which are used
by professionals, practitioners, business as well as individuals. This articles look at the role that
creativity plays in the process of innovation by looking at the interface between the two. It looks
at the way creativity is applied within to the overall process of innovation. The role of creativity
people is examined and how they impact upon society. The development of creativity and the
discussion regarding nature and nature is looked religion to Darwinism. The role of the
individuals as an important part of being creative and tacking creativity forward is then looked
leadership. The article concludes by establishing the importance of ongoing research to continue
to understand the link between creativity and innovation.
T.K.thangal walajah
CERTIFICATE
I. Introduction
Creativity is a process by which a symbolic domain in the culture is changed. New songs,
new ideas, new machines are what creativity is about Mihaly(1997). Creativity is the ability to
make or otherwise bring into existences something new, whether a new solution to a problem, a
new method or device, or a new artistic object or form. Wyckoff (1991) defines creativity as new
and useful. Creativity is the act of seeing things that everyone around us sees while making
connections that no one else has made. Creativity is moving from the known to the unknown.
Culture exerts a negative force on creativity according to Pearce (1974), however, “were it not
for creativity, culture itself would not be created.”
No entrepreneur or enterprise, however successful and big, can continue to hold a place of
leadership unless it recognizes that modern business operates in a world of galloping change
which creates new problems, risk and opportunities and for which they have to mobilize the
enterprise’s resources before changes make their impact felt. To do successfully, the
entrepreneur and enterprise should know where this firm is going and how the firm will get
there. This is turn requires a clear definition of the company’s business which will enable it to
continually adopt operations to the realities of the market place, ‘the very corner stone of
survival and growth”
Innovation is defined as adding something new to an existing product or process. The key
words are adding and existing. The product or process has already been created from scratch and
has worked reasonably well. When it is changed so that it works better or fulfils a different need,
then there is innovation on what already exists. Innovation is the successful exploitation of new
ideas.
All innovation begins with creative ideas. C creativity is the starting point for innovation.
Creativity is however necessary but not sufficient condition for innovation. Innovation is the
implantation of creative inspiration.
1.1 .THE PRINCIPLES OF CREATIVITY
People become more creative when they feel motivated primarily by the interest,
satisfaction, and challenge of the situation and not by external pressures; the passion and interest
– a person’s internal desire to do something unique to show-case himself or herself; the person’s
sense of challenge, or a drive to crack a problem that no one else has been able to solve.
1.Expertise
3. Motivation.
Expertise encompasses everything that a person knows and can do in the broad domain of
his or her work- knowledge and technical ability. Creative thinking refers to how you approach
problems and solutions- the capacity to put existing ideas together in new combinations. The
skill itself depends quite a bit on personality as well as on how a person thinks and works.
Expertise and creative thinking are the entrepreneur’s raw materials or natural resources.
Motivation is the drive and desire to do something, an inner passion and interest. When people
are intrinsically motivated, they engage in their work for the challenge and enjoyment of it. The
work itself is motivating. People will be most creative when they feel motivated primarily by the
interest, satisfaction and the challenge of the work itself-“the labour of love”, love of the work-
“the enjoyment of seeing and searching for an outstanding solution – a break through.
The entrepreneur is primarily concerned with developing new products, processes or markets,
the ability to bring something new, product, processes or markets, the ability to bring something
new into the market. The entrepreneur indulges in original thinking more than any other person
thinks and he is able to produce solutions that fly in the face of established knowledge.
Entrepreneurs are inclined to be more adaptable and are prepared to consider a range of
alternative approaches. They challenge the status quo, which can sometimes bring them into
conflict with their colleagues. They dismiss their detractors and are sometimes regarded as aloof.
Stoner and Wankel(1986).
Entrepreneurs take bold creative steps but situations encourage creativity. Creativity is,
however, enhanced when people have some freedom, but not too much; high internal
commitment to the task; but not too high a commitment; high proportion of intense rewards, but
some extrinsic rewards as well; some competition but not winnertake-all competition. Thompson
(2001). Entrepreneurial activity depends on the process of innovation following creativity, not on
creativity alone.
1.2.Some Characteristics of Being Creative
Independence Tolerance of
ambiguity
It is necessary to know that we live in a thinker’s world. It is therefore, not surprising to see
that the men/women who are ahead are those who see ahead with the eyes of their mind. Men
and women who have engaged their minds in resourceful thinking to generate idea and products,
which stand the test of time.
Every idea is a product of thinking and every product is the manifestation of idea naked in a
thinker’s mind. These are people who see problems as opportunities to improve and do
something new or something better, people who keep these two vital questions on their mind.
“What can I do to make things better, or what can I do to make better things? This is the
product of thinking.
In making things better, the goals are usually to improve productivity And efficiency,
achieve speed, enhanced comfort and convenience, influence returns positively, and so much
more. While in making better things, thinking can produce various alternative leading making
better things, thinking can produce various alterative leading to the evolution of a completely
new idea, new production processes, or a total departure from the conventional. Whatever the
goal, thinking is an indispensable tool in the life of all successful entrepreneurs.
The celebrated discoveries of man are not accidents. The minds of men/women were
engaged in creative thinking to deliver the visible products we enjoy today. Name them: Bill
Gate and the computer, Graham Bell and the telephone, Michael Faraday and electricity, Isaac
Newton and physical law of science, the Wight brothers and Aeroplane, Adenuga and
Consolidated oil, Atedo peterside and Investment Banking and Thrust Company, Raymond
Depokesi and Dear Communications. The list is endless. You too can join them as you begin to
“ponder the path of your feet, that all your ways may be established.”
The place of asking the right and relevant questions in thinking process cannot be
overemphasized. Questions remain the string tool to provoke the mind to respond to issues ands
discover new things. Creative thinking must, therefore, lead to the articulation of a strategy. A
strategy is a way of organizing available resources to achieve results, what to do, what steps to
take, the approach, the timing, positioning, all come to play when developing strategy. It is a
common knowledge that successful entrepreneurs emerge not by strength or force but by
superior strategy through creative thinking.
There are great business opportunities in applying creative thinking to solving mankind’s
crying need for basic products and basic support services –better homes, better jobs, and a better
way of life.
Research into the operation of human brain shows that each hemisphere of the brain
processes information differently and that one side of the brain tends to be dominant over the
other. The human brains develop asymmetrically, and each hemisphere tends to specialize in
certain functions. The left-brain is guided by linear, vertical thinking (from one logical
conclusion to the next); whereas the right brain relies on kaleidoscopic, lateral thinking
(considering a problem from all sides and jumping into it at different points). The left-brain
handles language, logic, and symbols; the right-brain takes care of the body’s emotional,
intuitive, and spatial functions. The left-brain processes information in a step-by-step fashion,
but the right-brain processes it intuitively-all at once, relying heavily on images.
Be reflective, often staring out windows, deep in thought. (How many traditional
managers would stifle creatively by snapping these people out of their “daydreams,” chastise
them for “loafing,” and admonish them to “get back to work?”.
Be prolific thinkers. They know that generating lots of ideas increase the likelihood of
coming up with a few highly creative ideas.
Although each hemisphere of the brain tend to dominate in its particular functions, the two
halves normally cooperate, with each part contributing its special abilities to accomplish those
task best suited to its mode of information processing. Sometimes, however, the two hemispheres
may even compete with each other, or one halve may choose not to participate. Some researchers
have suggested that each half of the brain has the capacity to keep information from other! The
result, literally, is that “the left hand doesn’t know what the right hand is doing.” Perhaps the
most important characteristics of this split-brain phenomenon are that an individual can learn to
control which side of the brain is dominant in a given situation. In other words, a person can
learn to turn down” the dominant hemisphere (focusing on logic and linear thinking) and turn
up” the right hemisphere (focusing on intuition and unstructured thinking) when a situation
requiring creativity arises. To get a little practice at this “shift,” try the visual exercises presented
in Fig. 2.2. When viewed from one perspective, the picture in the middle portrays an attractive
young lady with a feather in her hair and a boa around here shoulders. Once you shift your
perspective, however, you will see an old woman with a large nose wearing a scarf on her head!
This change in the image seen is the result of a shift from one hemisphere in the viewer’s brain
to the other. With practice, a person can learn to control this mental shift, tapping the pool of
creativity that lies hidden within the right side of the brain. This ability has tremendous power to
unleash the creative capacity of entrepreneurs. The need to develop this creative ability means
that exploring inner space (the space within our brains)-not outer space-becomes the challenge of
the century.
Successful entrepreneurship requires both left- and right brained thinking. Right brained
thinking draws on the power of divergent reasoning, which is the ability to create multitude of
original, diverse ideas. Left-brained thinking counts on convergent reasoning, the ability to
evaluate multiple ideas and choose the best solution to a given problem. Entrepreneurs need to
rely on right –brain thinking to generate innovative product, service, or business ideas. Then they
must use left-grain thinking to judge the market potential of the ideas they generate. Successful
entrepreneurs have learned to coordinate the complementary functions of each hemisphere of the
brain, using their brain’s full creative power to produce pragmatic innovation. Otherwise,
entrepreneurs, who rarely can be accused of being “half-hearted” about their business ideas, run
the risk of becoming “half headed
2.The Critical Thinking Process
There are two aspects of creativity that is the Process and people. Process is defined as the
particular goal(s) intended to be achieved while people are the resources that are used to achieve
these goals.The creative process has four commonly agreed steps:
2. Incubation process
3. Idea experience
Incubation
Evaluation and
implementation
2.1.Accumulation of Knowledge
This involves extensive reading, conversation of experts, professional meetings and lectures
and a general assumptions of information relating to the problem or history under such a study.
Incubation
Incubation process often occurs when individual engaged in activities totally unrelated to the
subject or problems. Steps involved to inducing incubation are as follows:
Exercise regularly
Play
Practice self-hypnotize.
Idea
This is often known as the creative process which is mostly gotten before the solution an
individual is seeking being discovered. Ways to speed up idea includes:
How can entrepreneurs learn to tap their innate creativity more readily? The first step is to
break the barriers to creativity that most of us have created over the years. We now turn our
attention to these barriers and some suggested techniques for tearing them down.
However, creativity has widely been described as the ability to develop new ideas and to
discovery new ways of looking at problems, threats and opportunity. Creativity tools can be
classified in many different manners. McFadzean (1998) has developed a framework for
classifying creativity tools using three categories:
Paradigm preserving
Paradigm stretching
Paradigm breaking
Paradigm preserving, where neither new elements nor relationships between the
elements of the problem are introduced.
Paradigm breaking, where both new elements and new relationships between the
elements are introduced. Tools include- Picture Stimulation, Rich Pictures, Imagining
etc.
3.1.There are three broad, overlapping categories of blocks:
Personal blocks
Problem-solving blocks
Environmental blocks
ii. Problem-solving blocks; are strategies, skills, or behaviours that inhibit ability to
focus and direct problem-solving activities, generate and identify options and
alternatives, or turn ideas into. Examples include: solution fixedness, premature
judgments, habit transfer action, using poor problem-solving approaches, lack of
disciplined effort, poor language skills, various perceptual patterns that limit intake
and rigidity.
iii. Environmental blocks ;are those factors in your context, situation, or setting that
interfere with your problem-solving efforts. This include: the belief that only one type
of thinking is required for creative outcomes, resistance to new ideas, isolation, a
negative attitude toward creative thinking, autocratic decision making, reliance on
experts, and various strategic blocks that limit the use of resources More than fifty
years ago, Osborn (1953) introduced creative tools and a model for solving problems
in creative ways. Since that time, this model, called Creative Problem Solving (CPS)
has become one of the most widely used approaches for applying creative thinking.
Studies have shown that CPS was one of the most effective methods for promoting
creative-thinking skills
3.2.Specific Barriers to Creativity
7. Avoiding ambiguity
In problem-solving, the barriers that block solutions must be addressed. Thus, in problem
solving, do a bit of divergent thinking, and information gathering before selecting a solution and
taking an action. All entrepreneurs require a lot of analytical thinking and creativity in problem
solving.
What is a problem?
A problem is a condition that is not acceptable. It may involve tangible and/or intangible
elements such as people, processes, systems, states of affair, products, circumstances, or
any business or personal situation.
The term "problem" simply refers to any discrepancy between the current situation and a
desired future situation.
The creative problem solving process differs from routine problem solving in that with
routine problem solving a pre-established method for solving the problem is used.
With creative problems solving, any pre-established method for solving the problem is
either unknown or not used.
Creative problem solving involves a hunt for new solutions.
While routine problem solving uses old solutions (Williams Scott).
Examples of Creative Approaches to Problem Solving
Having idea power: Generating many, varied, and unusual ideas that have high potential
to address the problem or meet the challenge in a fresh and valuable way.
Being persistent: Investing energy and talent in taking a wild or highly unusual idea and
shaping, refining, and developing the idea into a workable solution.
Considering aspects of the situation surrounding the solution to enable agreement of your
solutions by others.
Being sensitive to the context and the people who may be involved with your solution
and working to obtain support and acceptance.
Having a variety of possible approaches to take for any given situation, challenge, or
problem. Being aware of the power of process.
Reflecting on many different factors in determining your technique (SilvanoArieti)
Objective Finding
Fact Finding
Problem Finding
Idea Finding
Solution Finding
Acceptance Finding
(VijaykrKhurana)
James Higgins - 101 Creative Problem Solving Techniques: The Handbook of New Ideas
for Business
Higgins describes eight basic stages in the creative problem solving process:
Recognizing a problem
Making assumptions
Generating alternatives
Control
The following, based on Van Gundy (1988’s) description, is a very brief skeleton of a very
Stage rich process, showing it in its full ‘6 x 2 stages’ form:
Stage1:.Mass finding
B. Generate Ideas
4. Idea Finding
Step 1: State what appear to be the problem Step 2: Gather facts, feelings and opinions.
In the problem solving, scholars have proposed that the following steps must be followed.
1.GENERATIN 2.OPTIMIZING
G
THE
SIMPLEX
CPS
APPROACH
3.CONCEPTTULIZING 4.IMPIEMATING
The Simplex creative process has four stages and eight steps which include:
Stage I Generating: Creating options in the form of new possibilities/problems that might be
solved and new opportunities that might be capitalized upon. It is composed of two steps:
Stage II Conceptualizing: Creating options in the form of alternate ways to understand and
define a problem or opportunity and good ideas that help to solve it. It is composed of two steps:
Stage III Optimizing: Creating options in the form of ways to get an idea to work in practice
and uncovering all the factors that go into a successful plan for implementation. It is composed
of two steps:
Stage IV Implementing: Creating options in the form of actions that get results and gain
acceptance for implementing a change or a new idea. It is composed of two steps:
What is a solution?
A solution is a man-made resolution to a problem. There are two common types of solutions:
Bad: An unsatisfactory solution. The solution is more costly than desired, it creates new
problems, or it doesn't last. Someone invariably loses.
Good: A satisfactory solution. The desired objective is achieved within acceptable
parameters and it lasts.
Creative Solution
The solution must solve a stated problem in a novel way, and the solution must be reached
independently.
5.2.Types of creative solution:
1. The creative solution: Many times a solution is considered creative if components that are
readily available can be used, and when there is a short time limit within which to solve the
problem. These two factors are typical to the solutions shown in the MacGyver.
2. Innovations: "All innovations (begin) as creative solutions, but not all creative solutions
become innovations” (Richard Fobes).
Creativity Innovation
Imagination Implementation
process product
Generating Developing
Novelty Usefulness
Soft Hard
Source: (SilvanoArieti)
Teams of people working together usually can generate more and more-creative ideas. Four
techniques that are especially useful for improving the quality of creative ideas from teams are
brainstorming, mind mapping, TRIZ, and rapid prototyping.
5.3.Organizing a Brainstorming Session
Brainstorming
The brainstorming technique is based on the capacity of the human brain to make associations.
As in any session or meeting, there are certain rules that need to be followed in order to ensure
that a brainstorming session produces good results. The session can be divided into three phases:
Brain writing
Brain writing is similar to brainstorming. The only difference is that the participants are given a
set of coloured sheets of paper (between 5 and 20) and the ideas are first written down, one idea
per sheet.
Mind Mapping
Mind mapping is a visual picture of a group of ideas, concepts or issues; using the mind
mapping systems further enhances the brain writing method. (HalkaBalackova).
Unblock your thinking. See an entire idea or several ideas on one sheet
of paper
See how ideas relate to one another. Look at things in a new and different way.
Write down the numbers of the items you feel are the major causes of the problem.
Share your votes by a show of hands.
Eliminate those items with the fewest votes.
Triz
Rapid Prototyping
Generating creative ideas is a critical step in the process of taking an idea for a product or a
service successfully to the market.
However, entrepreneurs find out that most of their ideas would not work, and that is where
prototyping plays an important part in creative process. The premise behind rapid prototyping is
that transforming an idea into an actual model will point out flaws in the original idea and will
lead to improvement in its design. “If a picture is worth a thousand words, prototype is worth ten
thousand,” says Steve Vasallo of Ideo Inc.
The three principles of rapid prototyping are the three R’s: rough, rapid, and right. Models do
not have to be perfect; in fact, in the early phases of developing an idea, perfecting a model
usually is waste of time. The key is to make the model good enough to determine what works
and what does not. Doing so allows an entrepreneur to develop prototypes rapidly, moving closer
to a successful design with each iteration. The final R, right means building lots of small models
that focus on solving particular problems with an idea. “You are not trying to build a complete
model,” says Vassallo. “You are just focusing on a small section of it.”
6.What is a Creative Technique?
A technique is simply the way you move toward, advance, or come closer to something.
Many of the techniques and tools for creating an effective solution to a problem can be
categorized into four as outlined below:
Mental state shift: Creativity techniques designed to shift a person's mental state into
one that fosters creativity. These techniques are described in creativity techniques. One
such popular technique is to take a break and relax or sleep after intensively trying to
think of a solution.
Multiple idea facilitation: These creativity techniques are designed to increase the
quantity of fresh ideas. This approach is based on the belief that a larger number of ideas
increase the chances that one of them has value.
Inducing change of perspective: The creative-problem-solving techniques are designed
to efficiently lead to a fresh perspective that causes a solution to become obvious. This
category is especially useful for solving especially challenging problems (Alex Osborn).
6.2. PRODUCT VS CREATIVITY INNOVATION NEW PRODUCT
Headsets
Wired headsets rely on your cable being compatible with the device port.
Headset use :
The following conceptual blocks (the 4Cs) can keep us from solving problems creatively
(Williams Scott).
Constancy: Once we have learned a solution to a problem, we often try to reuse that
solution when encountering similar problems. Creative problem solving requires being
able to define and solve problems in multiple ways.
Commitment: Although our minds can process a lot of information, we often get
committed to overly simplistic assumptions about things.
Complacency: Sometimes we give up too easily when we encounter problems for which
we don't immediately see solutions.
Play around with the problem definition, state the problem as you see it and then try to
see it in other ways.
Pattern breaker: think beyond cognitive ruts and gain a fresh perspective on the
problem.
Shake-up: exercises gets one out of comfort zones and more receptive to unusual ideas.
It can encourage taking risks, relaxation, and new ideas.
7. INNOVATION
Innovation is the process of bringing the best ideas into reality, which triggers a
creative idea, which generates a series of innovative events. Innovation is the creation of
new value. Innovation is the process that transforms new ideas into new value- turning an
idea into value. You cannot innovate without creativity. Innovation is the process that
combines ideas and knowledge into new value. Without innovation an enterprise and
what it provides quickly become obsolete.
Enterprises throughout the world are experiencing what can be legitimately described
as a revolution: rising energy and material costs, fierce international competition, new
technologies, increasing use of automation and computers. All these are major
challenges, which demand a positive response from the entrepreneur and management if
the enterprise is to survive and prosper. At a time when finance is expensive, the firm’s
liquidity is bordering on crisis, the need for creativity, and innovation is more pressing
than ever and as competitors fall by the way side, the rewards for successful products and
process are greater.
The instigation of new development is the responsibility of the enterprises
themselves, which, through experience, are aware of the difficulties created when
undertaking innovative investments in a period of great uncertainty. Innovation calls for
special entrepreneurial and management skills, the cooperation of a committed
workforce, finance and a climate which will create the optimum overall conditions to
encourage success.
Joseph Schumpeter (1934) believes that the concept of innovation, described as the
use of an invention to create a new commercial product or service, is the key force in
creating new demand and thus new wealth. Innovation creates new demand and
entrepreneurs bring the innovations to the market. This destroys the existing markets and
creates new ones, which will in turn be destroyed by even newer products or services.
Schumpeter calls this process “creative destructions.”
7.2.Forms of Innovation
In a start-up, the entrepreneur is regarded as the key actor in developing a business idea,
marshalling resources, and creating an enterprise to bring a new product or service to the market.
In a competitive business environment, the entrepreneur and the enterprise should continue to
seek lout now opportunities and make the necessary arrangement to convert them into new goods
and services. Innovation should, therefore, impregnate the entire enterprise for the creation and
invention of competitive edge and relevancy in the market place.
1. The need to investigate our latent natural resources for the possibility of transmitting
them into goods and services. This would require a scientific analysis of the various
resources available in the country, the identification of their properties, and a
determination of the extent to which those properties can be harnessed.
2. The need to develop new technology which can be used to process the raw materials
which may result from the investigation of natural resources suggested above and with a
view to producing goods and services from them.
3. The need to adapt existing technology so as make them accept local materials are
substitutes. A complete change from an almost total dependence on foreign research and
technology is source of products is called for. Entrepreneurial success in this century,
therefore, depends on the seriousness with which innovative activities are undertaken by
the enterprises in terms of indigenizing input sourcing and the development of new
indigenous products.
The society in general will benefit tremendously from the individual enterprises
undertaking innovative activities rather than leaving such to government agencies. As
Max Weber has observed “when innovation is channelled through autonomous
competing enterprises, risk is encouraged and the social curse of unsuccessful innovation
can be limited. Society can afford to have an enterprise failure, but society cannot afford
to have government failure. Government economic planners proceeding by law or fiat
have no flexible mechanism comparable to a market in which they can assess the
probabilities of any given risk and measure its results”. No enterprise, however
diversified or big, can therefore, rest on its oars and past achievements. It becomes
imperative for an enterprise to continuously challenge itself to finding new and better
ways of doing the old things or in fact create new ways of doing new things. The new
environment may therefore call for new product designs, new production techniques,
composition and packaging which take cognizance of the dynamic business environment.
Success in business today demand constant innovation. Generating fresh solutions to
problems and the ability to inherit new products or services for a changing market are
part of the intellectual capital market that gives an enterprise its competitive edge. In a
dynamic environment, success comes from looking for the next opportunity and having
the ability to find hidden connections and insights into new products or services, desired
by the customer.
While brain-power is the most valuable resource, great ideas are in short supply.
Successful entrepreneurs place high premium on attracting and keeping talent because
wealth flows directly from innovation. Creativity is the root of innovation. It is a process
and a skill which can be developed and managed throughout the entire enterprise.
One of the first steps in creating a culture of innovation is unleashing the creativity in
yourself. The challenge is getting to see the world with fresh ideas and to develop fresh
solutions. Speed innovating is a proven approach for helping you develop breakthrough
solutions in the shortest possible time.
Creative ideas are not enough for your business to survive. You need a process
organization and culture that will help you maximize your creative assets. This is
innovation capability that helps your pull together the best thinking within your business,
enabling you to connect the organization dots.
Shapiro argues that perpetual and pervasive innovation is the key to long –term
sustainable success in the relentless competition for customers. To survive any
competition, you must rapidly and repeatedly re-invent yourself. The road map to
reinvention starts by applying the seven R’s.
1. Rethink your underlying assumptions
2. Reconfigure how you carry out work.
3. Resequence when work takes place
4. Relocate where work is done to cut down on handoffs and delays.
5. Reduce the frequency of carrying our specific activities
6. Reassign who does the work by asking if anyone else could achieve the same result
more effectively and efficiently.
7. Retool the technology that supports getting the work done. Could new software and
automated equipment transform our ways of working?
7.4.Principles of Innovation
The major innovation principles are:
i. Action oriented: innovators must always be active, searching for new ideas and
opportunity or sources of innovation.
ii. Make the product, process or services simple and understandable: people must
readily understand how the innovation works.
iii. Make the product or services customer based: innovation always must keep the
customers in mind. The more the innovator has the end user in mind, the greater
the chances the concept will be accepted and used.
iv. Start small: innovators do not attempt project or development on a grandiose
scale. They should begin small ant then build and develop allowing for planned
growth and expansion in the right manner and at the right time
v. Aim high: innovators do aim high for success by seeking a niche
vi. Try / test/ revise: innovator should always follow the rule to try / test and revise.
The helps work out any flaws in the product, process or service.
vii. Learn from failure: innovation does not guarantee success. More importantly
failure often given rise to innovation.
viii. Follow a mile-stone schedule: every innovator should follow a schedule that
indicates mile-stone accomplishment. Although, the project may run ahead or
behind schedule, it is still important to have a schedule in order to plan and
evaluate the project.
7.5.Sources of Innovation
Unexpected world event including natural disasters, act of terrorism, wars have given rise to
innovating new product and services
1. Process need
2. Industry and market structures
3. Demographic
4. Changes in perception
5. New knowledge
7.6.Theories of Innovation
Different theories of innovation that has been put forward to prove the phenomenon of
innovation example of which would be discussed as follows;
Time
Social system
Innovation often outstrips the capacity of the market place to assimilate it. Companies
almost seek to solve the hardest problems and to dos so at a faster rate than consumers can
absorb, failing to recognize that the performance level customers can utilize is relatively flat. The
characteristics of sustaining innovation and disruptive innovation are separate and distinct. It is
given as;
Better Different
Premium price Low price
complicated Simple
Sources: Anthony (2005)
Shapiro argues that perpetual and pervasive innovation is the key to long-term sustainable
success in the relentless competition for customers. To survive any competition, you must
rapidly and repeatedly invest yourself. The raod map to re-invention starts by applying the seven
R’s.
6. Reassign who does the work by asking if anyone else could achieve the same result more
effectively and efficiently.
7. Retool the technology that supports getting the work done. Could new software and automated
equipment transform our ways of working? In other to survive an entrepreneurs must use the
innovation model appropriately to where they are positioned in the market, therefore seven
pillars of innovation are very essential to all entrepreneurs who want to meet their goals and have
competitive advantage.
Remove Insert
Using one process for all innovations Different resources and processes
Expecting projects to get big fast Be patient for growth and impatient for
profits
Rogers (1995) develops five variables which affect that adoption rate of any particular
innovation as well as the rejection of the innovation; these includes;
Variables Determining the Dependent Variable Rate of Adoption of Innovation that is Explained
v. Observability
Growth and development cannot be sustained without additional innovations (usually in the
product or services or in its marketing) with additional innovation, firms become “glamorous”
introducing new products is seen as part of the process of innovation, which is always seen as the
engine driving continued growth and development.
The winning performance of the entrepreneur and the organization focuses on:
Competing on quality not prices
Domination of a market niche
Competing in an area of strength
Having tight financial and operating controls
Frequent product or services innovation (particularly important in manufacturing).
Management, response to optimal technical change and innovation are crucial duties of an
entrepreneur, failure to accomplish these may undermine the basis of his /her venture existence.
There are four-stage processes which is relevant for managing and responding to technical
change and innovation which is by its nature useful for enterprise existence.
These are:
Stage 1: This involves the scanning of the environment for relevant signal indicating opportunity
for change.
Stage 2: This involves deciding which of this signal to respond to, based on the strategic view
of how the enterprise can best developed
Stage3: This involves acquiring resources to enable a firm respond to his signal and might be as
a result of research in development.
Stage4: Implementing the project; developing both the technology and market in other to
respond effectively.
9. Conclusion
Successful entrepreneurs require an edge derived from some combination of a creative idea
and a superior capacity for execution. The entrepreneur’s creativity may involve an innovation
product or a process that changes the existing order. Or entrepreneur may have a unique insight
about the course or consequence of an external change. Entrepreneurship is the vehicle that
drives creativity and innovation. Innovation creates new demand and entrepreneurship brings the
innovation to the market. Innovation is the successful development of competitive edge and as
such, is the key to entrepreneurship. Creativity and Innovation are at the heart of the spirit of
enterprise. It means striving to perform activities differently or to perform different activities to
enable the entrepreneur deliver a unique mix of value. Thus the value of creativity and
innovation is to provide a gateway for astute entrepreneurship—actively searching for
opportunities to do new things, to do existing things in extraordinary ways. Creativity and
Innovation therefore, trigger and propel first-rate entrepreneurship in steering organization
activities in whatever new directions are dictated by market conditions and customer preferences,
thereby delighting the customers to the benefit of the stakeholders. Innovation also means
anticipating the needs of the market, offering additional quality or services, organization
efficiently, mastering details, and keeping cost under control.
No doubt, the current economic environment is a volatile and violent one. The new
environment demands renewed dynamism of approach. Creativity and innovation is the new
name of the game. Only the discerning organizations can manage the changes inherent in the
new environment. It is the duty of the entrepreneur to keep his/her organization lean, young,
flexible, and eager for new things to continuously delight the customers, which is the purpose of
every business.
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