INNOVATION AND ENT
INDIVIDUAL REPORT
NAME: W. DANANJI THAKSHILA
CARDIFF ID NUMBER: ST20282865
COMPARE CREATIVITY AND INOVATION
Question Number 01
Creativity Innovation
Creativity refers to the Innovation involves the
generation of novel and implementation of creative
valuable ideas or solutions. ideas to create new
It involves thinking products, services, or
Definition differently and coming up processes that deliver value
with original concepts or to customers or society. It is
approaches. about turning creativity into
something tangible and
marketable.
Creativity is often Innovation is a more
associated with individual systematic and structured
thinking and can occur process compared to
anywhere, not necessarily creativity.
within a business context.
It involves taking risks and
It can be unstructured and often requires substantial
Characteristics intuitive, often driven by resources for development
inspiration. and commercialization.
Creativity may or may not Innovation leads to the
lead to a practical creation of something new
application or marketable and can disrupt existing
product. markets.
Why Creativity and Innovation Are Keys to Entrepreneurial
Success:
1. Competitive Advantage:
Creativity: Creative thinking allows entrepreneurs to come up with unique
ideas and solutions that differentiate their offerings in a crowded market.
Innovation: Innovation helps entrepreneurs turn creative ideas into practical,
marketable products or services that can gain a competitive edge. For example,
Apple's innovative product designs set it apart from competitors.
2. Adaptation to Change:
Creativity: Creative entrepreneurs are more adaptable to changing market
conditions as they can generate new strategies and ideas.
Innovation: Innovation enables entrepreneurs to adapt and respond to market
shifts, evolving customer preferences, and emerging technologies. For example,
Netflix transitioned from DVDs to streaming to stay relevant.
3. Problem-Solving:
Creativity: Creative thinking is essential for identifying and solving complex
problems that entrepreneurs often face.
Innovation: Innovation is the practical application of creative solutions to real-
world problems. SpaceX's reusable rockets, for instance, solved the problem of
reducing launch costs in space exploration.
4. Market Growth:
Creativity: Creative entrepreneurs may have ideas for new markets or product
niches.
Innovation: Entrepreneurs who continuously innovate can expand their market
reach. Amazon, initially an online bookstore, diversified into various sectors and
became a global e-commerce and cloud computing giant.
5. Value Creation:
Creativity: Creative thinking generates ideas that can be valuable but may
require innovation to bring them to market.
Innovation: Innovation creates value by delivering practical and often
disruptive solutions. Airbnb's innovative platform disrupted the hospitality
industry by connecting homeowners with travelers.
References and Real-World Examples:
Chesbrough, H. W. (2003). Open Innovation: The New Imperative for
Creating and Profiting from Technology. Harvard Business Review Press.
Besant, J., & Tidd, J. (2015). Creating Innovation Leaders: A Global
Perspective. Routledge.
Apple Inc. (2021). Annual Report 2021.
Netflix. (2022). Netflix Q1 2022 Earnings Interview.
SpaceX. (2022). SpaceX Announces New Commercial Agreement for
Starship.
Amazon.com. (2022). Amazon.com Announces Fourth Quarter Results.
Airbnb, Inc. (2021). Airbnb Announces Fourth Quarter and Full Year 2020
Results.
Uber Technologies, Inc. (2022). Uber Technologies, Inc. Q4 2021 Earnings
Conference Call.
In conclusion, creativity and innovation are closely related but distinct concepts
crucial for entrepreneurial success. Creativity generates ideas, while innovation
transforms those ideas into practical solutions that drive competitiveness,
adaptation, problem-solving, market growth, value creation, and investor
attraction. Real-world examples from companies like Apple, Netflix, SpaceX,
Amazon, Airbnb, and Uber illustrate the symbiotic relationship between
creativity and innovation in entrepreneurial endeavors.
WHAT IS OPEN INOVATION
Question Number 02
Open innovation is a paradigm shift in the way companies approach
innovation. It was popularized and extensively researched by Henry
Chesbrough, Wim Vanhaverbeke, and Joel West, among others. Open
innovation refers to the practice of seeking external ideas, technologies, and
partnerships to complement a company's internal R&D efforts. It acknowledges
that valuable knowledge and innovative solutions can be found beyond a
company's boundaries, in a collaborative and interconnected world.
Importance of Open Innovation in the 21st Century
1. Access to a Global Pool of Talent and Ideas: In the 21st century, the
world is more connected than ever before. Open innovation allows
companies to tap into a global pool of talent and ideas. By collaborating
with external experts, startups, universities, and research institutions,
companies can access a broader range of skills and knowledge.
Example: Procter & Gamble's Connect + Develop program is a prime
example. They collaborate with external partners to develop innovative
products, such as the Swiffer mop, which was co-developed with an
external inventor.
2. Cost Efficiency: Open innovation can be a cost-effective way to
innovate. Instead of solely relying on internal R&D, companies can share
the expenses and risks of innovation with external partners. This is
particularly important in a competitive business landscape.
Example: IBM's Innovation Jam is a global brainstorming platform that
engages employees, customers, and external partners to generate
innovative ideas. It has led to cost-effective solutions in various domains.
3. Faster Time-to-Market: Speed is crucial in the 21st century. Open
innovation can accelerate the development and commercialization of
new products and services. By leveraging external expertise, companies
can bring innovations to market more quickly.
Example: Tesla's decision to share its electric vehicle patents with the
industry is a strategic move to speed up the adoption of electric vehicles
globally, benefiting both Tesla and the industry.
4. Risk Mitigation: The 21st century is marked by rapid technological
advancements and disruptions. Open innovation allows companies to
spread the risks associated with innovation by collaborating with
multiple partners. This helps in diversifying innovation portfolios.
Example: GE's Ecomagination initiative collaborates with startups and
partners globally to develop environmentally sustainable technologies,
mitigating risks associated with shifting energy trends.
5. Enhanced Customer-Centricity: Open innovation allows companies to
engage customers and incorporate their feedback into product
development. This customer-centric approach is vital in an era where
customer expectations are continually evolving.
Example: LEGO Ideas is a platform where customers can submit their
own LEGO set designs. If a design receives enough support, LEGO
manufactures and sells it, thus involving customers directly in the
innovation process.
In conclusion, open innovation is critical for companies in the 21st century. It
enables them to access external expertise, reduce costs, accelerate innovation,
manage risks, become more customer-centric, and build innovation ecosystems.
The works of authors like Henry Chesbrough, Wim Vanhaverbeke, and Joel West
have shed light on the importance of open innovation, and real-world examples
demonstrate how companies are successfully implementing open innovation
strategies to stay competitive and agile in today's rapidly changing business
landscape.
DEVELOP AN INNOVATION CULTURE
Question Number 03
Developing an innovation culture within an organization is essential for
fostering continuous creativity and adaptability. Authors like Cris Beswick,
Derek Bishop, and Jo Geraghty have contributed to the understanding of
innovation culture. Here are critical strategies and actions to cultivate an
innovation culture, supported by relevant references and real-world examples:
1. Leadership Commitment and Role Modeling:
Strategy: Senior leaders should actively champion and
participate in innovation efforts. They need to embody the
desired innovation behaviors to set the tone for the entire
organization.
Action: Executives at Google's X division, like Astro Teller,
exemplify this approach by embracing failure as part of the
innovation process, encouraging employees to take calculated
risks.
Reference: Google X: The Moonshot Factory. (2018). Harvard
Business School Case 618-007.
2. Clear Vision and Purpose:
Strategy: Define a clear innovation vision and purpose that
aligns with the organization's overall goals and values.
Communicate this vision effectively to all employees.
Action: Apple's commitment to innovation in design and user
experience, as communicated by Steve Jobs, continues to drive
its product development and corporate culture.
Reference: Isaacson, W. (2011). Steve Jobs. Simon & Schuster.
3. Empower and Encourage Employees:
Strategy: Create an environment where employees feel
empowered to contribute ideas and are encouraged to take
calculated risks without fear of repercussions.
Action: 3M's "15% Time" policy, where employees are
encouraged to spend 15% of their work hours on personal
projects, has led to innovations like Post-it Notes.
Reference: Nicholson, N., & Ruddle, K. (2017). Innovation at
3M Corp. Harvard Business School Case 699-022.
4. Collaborative Workspaces and Tools:
Strategy: Provide the necessary physical and digital
infrastructure that promotes collaboration, idea sharing, and
experimentation.
Action: Companies like IDEO and Pixar invest in creative
workspaces that facilitate cross-functional collaboration and
brainstorming, leading to innovative solutions.
Reference: Kelley, T., & Kelley, D. (2013). Creative confidence:
Unleashing the creative potential within us all. Crown
Business.
5. Learning and Development Programs:
Strategy: Invest in training and development programs that
enhance employees' creative thinking, problem-solving, and
innovation skills.
Action: General Electric's Crotonville Leadership Development
Institute offers courses on innovation and leadership, fostering
a culture of continuous learning and innovation.
Reference: Satterwhite, J., & Chappell, M. (2017). GE's Jeff
Immelt: The Voyage from MBto CEO. Harvard Business School
Case 417-065.
6. Recognition and Rewards:
Strategy: Recognize and reward innovative efforts and
outcomes to motivate employees and reinforce the importance
of innovation.
Action: IBM's Innovation Man of the Year award recognizes
employees who have made significant contributions to
innovation, encouraging a culture of recognition.
Reference: IBM. (2019). IBM Annual Report 2019.
In conclusion, developing an innovation culture requires a holistic
approach that involves leadership commitment, clear vision,
empowerment of employees, collaboration, learning and
development, recognition, customer-centricity, and a commitment to
continuous improvement. Real-world examples illustrate how these
strategies and actions have been effectively implemented by
companies to create a culture of innovation.
