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P5 Innovation

Innovation involves converting opportunities into marketable ideas, not just having a good idea. The creative process involves knowledge accumulation, incubation of ideas, the idea experience, and evaluation/implementation. Common barriers to ideas include dismissing them as impractical or saying the organization has never tried that before. Developing creativity involves recognizing relationships and viewing things functionally in terms of needs. Innovation is an attempt that significantly increases the cost-benefit ratio where costs include difficulty and benefits include convenience. Non-technological innovations include productivity, marketing, pricing, branding, and legal innovations. Successful innovation principles include not killing projects, tolerating failure, and staying close to customers.

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70 views20 pages

P5 Innovation

Innovation involves converting opportunities into marketable ideas, not just having a good idea. The creative process involves knowledge accumulation, incubation of ideas, the idea experience, and evaluation/implementation. Common barriers to ideas include dismissing them as impractical or saying the organization has never tried that before. Developing creativity involves recognizing relationships and viewing things functionally in terms of needs. Innovation is an attempt that significantly increases the cost-benefit ratio where costs include difficulty and benefits include convenience. Non-technological innovations include productivity, marketing, pricing, branding, and legal innovations. Successful innovation principles include not killing projects, tolerating failure, and staying close to customers.

Uploaded by

naeem_sukhera
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Innovation

#5
Innovation
• The process by which
entrepreneurs convert
opportunities into marketable
ideas.
• More than just a good idea.
The Role of Creativity
Creativity is the generation of
ideas that result in the
improved efficiency or
effectiveness of a system.
The Creative Process
• Phase 1: Background or Knowledge
Accumulation
• Phase 2: The Incubation Process
• Phase 3: The Idea Experience
• Phase 4: Evaluation and
Implementation
The Creative Thinking
Process
Incubation

Knowledge Creative
Ideas
Accumulation Process

Evaluation
and
Implementation
The Most Common Idea Stoppers
1. “Naah.”
2. “Can’t” (said with a shake of the head and an
air of finality)
3. “That’s the dumbest thing I’ve ever heard.”
4. “Yeah, but if you did that . . .” (poses an
extreme or unlikely disaster case)
5. “We already tried that – years ago.”
6. “We’ve done all right so far; why do we need
that?”
7. “I don’t see anything wrong with the way
we’re doing it now.”
8. “That doesn’t sound too practical.”
The Most Common Idea
Stoppers
9. “We’ve never done anything like that
before.”
10. “Let’s get back to reality.”
11. “We’ve got deadlines to meet – we
don’t have time to consider that.”
12. It’s not in the budget.”
13. “Are you kidding?”
14. “Let’s not go off on a tangent.”
15. Where do you get these weird ideas?”
Developing Your Creativity

• By Recognizing Relationships

If you wish to improve your


creativity, it helps to look for
different or unorthodox
relationships among the elements
and people around you.
Developing a Functional Perspective

A creative person tends to view


things and people in terms of
how they can satisfy his or her
needs and help complete a
project.
Using Your Brains

The right brain hemisphere helps


an individual understand analogies,
imagine things, and synthesize
information. The left brain
hemisphere helps the person
analyze, verbalize, and use rational
approaches to problem solving.
Processes Associated with the
Two Brain Hemispheres
Left Hemisphere Right Hemisphere
• Verbal • Nonverbal
• Analytical • Synthesizing
• Abstract • Seeing Analogies
• Rational • Nonrational
• Logical • Spatial
• Linear • Intuitive
• Imaginative
Types of Innovation
• Invention
• Extension
• Duplication
Sources of Innovation
• Unexpected Occurrences
• Process Needs
• Industry and Market Changes
• Demographic Changes
• Perceptual Changes
• Knowledge-Based Concepts
Financial Support for Innovation

• Two major sources of


financial backing are:
–Venture Capital
–Government Support
Myth of Innovation
• Innovation mainly technological
• New, novel, creative
• Innovation often confused with
invention
• Discovery – Invention – Innovation
• Innovation can be managerial, legal,
political
Innovation – Definition
• Innovation is an attempt which produces a
significant increase in the cost to benefit
ratio
• Costs and benefits are defined in
comprehensive ways
• Costs: monetary, difficulty, inconvenience,
physical risk
• Benefits: Money, pleasure, health, fun,
convenience
Innovation – Examples
• Optical communication systems –
bandwidth vs cost
• Flexible Manufacturing Systems: choice vs
cost
• Web-enabled processes: customer
satisfaction vs cost
• ATM Machines: convenience vs cost
Non-technological Innovations
• Productivity Innovation: Cars assembly line
• Marketing innovation
• Pricing innovation
• Branding innovation
• Legal Innovation: Patents, Limited liability
companies
• Financial innovations: insurance, mutual
funds, installment buying, home loans, credit
cards, derivatives (futures and options),
mortgage
3M’s Innovation Rules
• Don’t kill a project
• Tolerate failure
• Keep divisions small
• Motivate the champions
• Stay close to the customer
• Share the wealth
The Ten Commandments of an Entrepreneur
1. Come to work each day willing to be fired
2. Circumvent any orders aimed at stopping your dream
3. Do any job needed to make your project work, regardless
of your job description
4. Network with good people to assist you
5. Build a spirited team: choose and work only with the best
6. Work underground as long as you can – publicity triggers
the corporate immune mechanism
7. Be loyal and truthful to your sponsors
8. Remember that it is easier to as for forgiveness than for
permission
9. Be true to your goals, but be realistic about the ways to
achieve them
10. Keep the vision strong

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